The number of idle fleet has swollen alarmingly high this summer. As compared to the corresponding figure for the previous years, it is up by 56000- 20’-equivalent units. This is as per the data from the industry analyst Alphaliner.
The report observes that it may take another 3 years for the market to absorb this status of order booking.
The desire of container lines to control overcapacity is attributed to be the main reason for this increase in idle tonnage. Another reason is the opening of the larger locks of the Panama Canal which has drastically reduced the demand for Panamax ships.
As on 25th July, there were 259 jobless ships with aggregate capacity of 906000 TEUs. However, presently, it is 345916 TEUs. Increase in vessel deliveries have added to the supply-demand gap.
The container ship order book as percentage of the existing fleet has fallen to 17.1%.
Several shipowners have delayed the delivery of vessels. Seaspan has also delayed the delivery of 4 10000-TEU ships until they secure charters.
Five 11000-TEU units built by Hanjin Philippines are still looking for work.
The situation is quite bad going by the sheer number of increasing idle ships.
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Source: JOC
